You Are the Owner of a Small Internet Company

question 45

Essay

You are the owner of a small Internet company.You are planning a public offering in 12 months.You ask your accountant to prepare an optimistic business model that shows a greater profitability potential than a conservative estimate would produce.When the accountant questions your profitability assumptions,you remind him that he has been given 10,000 shares of the company stock at a low price.A public offering would dramatically increase the value of those shares.Discuss the ethical issues faced by the owner and the accountant.How should they be resolved?

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Definitions:

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, known for its sharp, pungent odor and use in fertilizers and cleaning products.

Electron Density

A measure of the probability of an electron being present at a specific location around an atom or molecule.

Octahedron

A polyhedron with eight faces, usually referring to a regular octahedron with eight equilateral triangles as faces.

Electron Density

A measure of the probability of an electron being present at a specific location, often used in quantum chemistry and crystallography.